Hypothetically, how much could you make if you properly invested...

[Vicious]

say 10k, maybe even 15k? SWIM has an idea

[flower_child]

Not sure if you mean selling drugs or buying stocks.

[4ction]

you can also invest in a starting business and potentially make 100x more than you put in if you did well.

If you put in 10k into AOL stock in 1995 you would have 1 million in 2000 so it all depends i guess

[Jonsi]

Oh shit man, this is where I am a viking. Give me more information though, such as your age, and how long until you need. So in the mean time, I'll throw out rough estimates:

*busts out his TI-83*

So, here is a list of outcomes by me guessing scenarios.

Scenario 1:

You have some sort of business plan... so you have roughly 10-15k right now or shortly that you want to invest to grow so you could quickly open your business. So, Scenario 1 says you are investing for one year (really short term, if this trully is you're idea, get another idea, it's not worth it.) Generally, you do not want to invest in individual equities or mutual funds if you plan on touching the money in under 7 years. The market is too volitale for such short term, you could easily lose a nice chunk of change. But we'll entertain this scenario anyways...

10k in Individual equities, or mutual funds for 1 year.

The average return on the market is 10% for the past 200 or so years. However, that's kind of a high estimate, so if you're fiscally conservative, I'd say 8% for highly conservative, or 9% for a better average. But anyways, best case average scenario:

10k @ 10% = $11,047.13, gain of $1,047.13 dollars.

This is best case scenario. Which currently right now, isn't looking so best case. Granted you might purchase an individual equity (stock) that is like pre-boom, and then BAM, you're a fuckin millionaire... it's happened. Is it likely? About as likely as Natalie Portman dropping to her knees and blowing me right now. So don't count on that.

Now, if this is the scenario, my bit of advice, go a CD. You could very fuckin easily lose money in 1 year. So, CD rates are decent right now with the feds setting prime so high.

So, right now through ingdirect.com (usually the highest, but currently they've been slacking slightly, but good indicator of the best CD's) their 12 month CD is giving 5.20% APY.

So 10k at 1 yr at 5.20% = $10,532.57, guarenteed gain of 532 dollars. So this is guaranteed. This is usually one of the better routes if you are in for less then 5 years. Also check out money market funds (don't fall for the money market at your bank, that's just another savings account, but an actual money market fund through a broker) they can be anywhere in the 4-6ish range. But it's variable. So, take your pick.

(quick math for 15k)

15k @ 12 month cD @ 5.2% = 15,798.86
15k @ 12 month in market @ best case of 10% = 16,570.70

Scenario 2:

You're young, and a realist. So you understand that your 15k isn't going to make enough money short enough to really get going with a business, so you're looking for 10-15 years down the line when you want to have your own business, or perhaps you're saving for your house (Fuck PMI!!!!!) So, you have 10-15k now you want to put into Mutual Funds (smart idea, once again, we're realists in this scenario) for 10-15 years. Reason I say Mutual Funds is because when you're investing 10-15k, you don't have enough money to properly diversify your portfolio with individual stocks. So, mutual funds diversify for you, and assuming you go with the better funds (www.vanguard.com or www.fidelity.com) you should be earning the market average. Basic rule of thumb (rule of wrist?) is that you DO NOT want to put all your eggs in one basket. If that stock goes down, you're fucked. Also, if you invest soley in one industry, if that industry plummets, you're fucked. So, Mutual Funds are managed by the best minds (well at the two sites listed above) and they charge a very small fee to do so. (Go No Load Mutual Funds, means no commission, which means the advisor is giving you the best advice. Buying individual stocks, commision is fucking high) So Mutual Funds are your friend throughout all walks of life when you play the market.

10k invested in a mutual fund for 10 years at roughly 9% (we're realists again!) = $24513.57 after 10 years. You gained nearly 150% of your money. Hell fuckin yeah!
10k invested in a mutual fund for 15 years at roughly 9% = 38,380.43 ... ding ding, new business of lbs of mary jane, here we come!

15k invested in a mutual fund for 10 years at roughly 9% = 36,770.36
15k invested in a mutual fund for 15 years at roughly 9% = 57,570.65

Scenario Three: (the one I hope, though judging by your original text, not likely, though I'm including it because we have a high number of young individuals here, so I hope that I didn't bore them, and by now they read this and get an idea)

So, you're 18, or so, and you realise your pension isn't gonna hold out, so onw you have to do what millions of baby boomers found out too late... and save for retirement.

So, the very first thing you did before you posted this thread was you signed up for your company's 401k plan. But if not, no fear, we can still make it out ahead. Find out about IRA's (I can explain, just I'm all typed out right now... so ask later)

So you're 18 and have nothing to your name, how the fuck are you going to be a millionaire and not have a high paying job? Easy, all it takes is self-discipline. Can you sock 100 bucks away a month? Maybe not right now, but say when you're in your career, making more money? But for simple math, we'll say you can sock away 50 bucks a month for your entire working life, and 100 bucks a month your entire working life. Since we're looking at 47 years (65 year old retiree, and you're 18 now), I'll bump the rate of mutual funds up to 10% (much longer time then the 10 years before, so I'm okay with this)

0 down, 50 bucks a month into a tax-sheltered account (IRA, 401k's) after 47 years in the market at an average of 10% a year (some down years, some up years) you would have $640,959.86, but, you only put in $28,200 of your own money. That's all!!!! 28k into 640k... think my math is wrong? It's not... it's because in this case, you have the most powerful ally of all. No it's not picking the best funds, it's called time. And the sooner you wait, the harder it is to get. I'll explain more in a minute.

Here's 100 bucks a month (50 bucks a pay check or so? 25 if weekly? Come on, you can cut out some excess spending)

0 down, 100 a month, 47 years at 10% = $1,281,919.73 You're a millionaire not even counting your other assets such as your home, auto, and other such things. And once again, that is only $56,400 of YOUR money you put in... the rest, is the amazing feat of compound interest. Compound interest is your friend, and so is time.

So, start saving just 50, or 100 bucks a month in a tax-sheltered account, and you don't have to worry about your retirement. Sounds nice, doesn't it?

Now, let's show how fucked you are if you wait to start planning for your retirement.

30-35... that's when most people think they should start planning for retirement. So now we have 30-35 years before retirement. Let's see how a little procrastinatoin will put you as the greeter at Space Wal-Mart:

35 years old, 0 down, 100 bucks a month at 10% average = $226,048.79.... wow, that won't even buy you a house in the future. And that is starting at the same place where you could be at 1.2 million had you started 15 years earlier. You just lost 1 million because you waited 15 years

How much would a 35 year old have to put in to an account in order to make the same amount as an 18 year old putting 100 bucks in a month you ask? This is how much: $567.10 a month to make the 1.2 million goal....

So, now that I've typed out enough and got on my gigantic soapbox I carry around, you youngin's start thinking about the future... NOW!

But, as for the original post, like I said, I need more information, I tried to play out what might be the situation, but I'm not 100% post the following info, and I can give you a more detailed response catered to your specific question:

How long before you need the money
How much risk willing to take

Oh and by the way, you've just recieved financial advice on par with a very HIGH majority of financial advisors from a 20 year old kid.... but I am 100% confident in what I stated, that i encourage all of you to read financial books (non-biased ones, big difference) and tell me if i gave incorrect information. A financial advisor has a very easy job in the sense that it's just regergitating the same information. This information is highly accurate... I just wanted to prove that a 20 year old stoner isn't wasting his life away But, take the information for what you want... it's accurate maybe some don't agree on the historic returns of the market, ubt other then that, it's just the same bullshit you'd get fed if you paid 100 bucks an hour to go talk to someone

[Vicious]

+Rep! I'm going to start the 100$ a month thing the second I find another job, hell, I spent more than 100$ a week on weed and since I'm going to be growing soon I won't have to buy any at all so I might even be putting more than 100 away a month. I was left alittle over 16k, I think I have close to 18k now I can throw 15k into a 15 year CD and still have a couple g's for some other personal investments that I was originaly talking about but I think you seriously steared me in a different direction in my life. Don't be supprised if I send you a PM anytime.

[Heinous Anus]

Originally Posted by Jonsi

Scenario Three: (the one I hope, though judging by your original text, not likely, though I'm including it because we have a high number of young individuals here, so I hope that I didn't bore them, and by now they read this and get an idea)

So, you're 18, or so, and you realise your pension isn't gonna hold out, so onw you have to do what millions of baby boomers found out too late... and save for retirement.

So, the very first thing you did before you posted this thread was you signed up for your company's 401k plan. But if not, no fear, we can still make it out ahead. Find out about IRA's (I can explain, just I'm all typed out right now... so ask later)

So you're 18 and have nothing to your name, how the fuck are you going to be a millionaire and not have a high paying job? Easy, all it takes is self-discipline. Can you sock 100 bucks away a month? Maybe not right now, but say when you're in your career, making more money? But for simple math, we'll say you can sock away 50 bucks a month for your entire working life, and 100 bucks a month your entire working life. Since we're looking at 47 years (65 year old retiree, and you're 18 now), I'll bump the rate of mutual funds up to 10% (much longer time then the 10 years before, so I'm okay with this)

0 down, 50 bucks a month into a tax-sheltered account (IRA, 401k's) after 47 years in the market at an average of 10% a year (some down years, some up years) you would have $640,959.86, but, you only put in $28,200 of your own money. That's all!!!! 28k into 640k... think my math is wrong? It's not... it's because in this case, you have the most powerful ally of all. No it's not picking the best funds, it's called time. And the sooner you wait, the harder it is to get. I'll explain more in a minute.

Here's 100 bucks a month (50 bucks a pay check or so? 25 if weekly? Come on, you can cut out some excess spending)

0 down, 100 a month, 47 years at 10% = $1,281,919.73 You're a millionaire not even counting your other assets such as your home, auto, and other such things. And once again, that is only $56,400 of YOUR money you put in... the rest, is the amazing feat of compound interest. Compound interest is your friend, and so is time.

So, start saving just 50, or 100 bucks a month in a tax-sheltered account, and you don't have to worry about your retirement. Sounds nice, doesn't it?

Now, let's show how fucked you are if you wait to start planning for your retirement.

30-35... that's when most people think they should start planning for retirement. So now we have 30-35 years before retirement. Let's see how a little procrastinatoin will put you as the greeter at Space Wal-Mart:

35 years old, 0 down, 100 bucks a month at 10% average = $226,048.79.... wow, that won't even buy you a house in the future. And that is starting at the same place where you could be at 1.2 million had you started 15 years earlier. You just lost 1 million because you waited 15 years

How much would a 35 year old have to put in to an account in order to make the same amount as an 18 year old putting 100 bucks in a month you ask? This is how much: $567.10 a month to make the 1.2 million goal....

So, now that I've typed out enough and got on my gigantic soapbox I carry around, you youngin's start thinking about the future... NOW!

But, as for the original post, like I said, I need more information, I tried to play out what might be the situation, but I'm not 100% post the following info, and I can give you a more detailed response catered to your specific question:

How long before you need the money
How much risk willing to take

Oh and by the way, you've just recieved financial advice on par with a very HIGH majority of financial advisors from a 20 year old kid.... but I am 100% confident in what I stated, that i encourage all of you to read financial books (non-biased ones, big difference) and tell me if i gave incorrect information. A financial advisor has a very easy job in the sense that it's just regergitating the same information. This information is highly accurate... I just wanted to prove that a 20 year old stoner isn't wasting his life away But, take the information for what you want... it's accurate maybe some don't agree on the historic returns of the market, ubt other then that, it's just the same bullshit you'd get fed if you paid 100 bucks an hour to go talk to someone

Plus MOTHER FUCKIN' REP! Some sound advice from a great mind. Awesome, I'll definitely be doing this in a few months. Thanks, man. Awesome.

"You spread some Reputation around before giving it Jonsi again."

[Johnny]

Jesus christ!

/bows to Viking

[Lil Loko]

Jonsi, wow... u broke it all down.. and gave me some great ideas... plus rep mos def

[4ction]

Originally Posted by Jonsi

Is it likely? About as likely as Natalie Portman dropping to her knees and blowing me right now. So don't count on that.

ahahahh you just made my day man.

It's a solid plan and the concept of compound interest is almost too crazy to believe... makes me wish I invested when i read a book about it when i was 16.... but your post sparked my interest again so ill start now. I fear that our country will fall apart by the time I'm retired anyway ... but $100 a month is nothing for the potential profits.

Just out of curiosity, have you given thought to investing in real estate? I think this is a more feasible way of getting rich instead of waiting until retirement but ill definately start saving up just in case.

thanks and plus rep

[Vicious]

Originally Posted by 4ction

Just out of curiosity, have you given thought to investing in real estate? I think this is a more feasible way of getting rich instead of waiting until retirement but ill definately start saving up just in case.

thanks and plus rep

Why invest real estate instead? If you're making that kind of money why not put more than 100$ back on top of the money you're already making. Same game plan, with just a different profession to it with. Only thing is I'm extremely skeptical of banks, or should I say our government with a crumbling economy. I

'll put my 15k in a 15 year CD. Take 1k out to get my grow room set up, and maybe 1k more to buy some coke or even nug and have some other people get ride of it and turn that around into fast profit and repeat. (just be the head and have a couple good friends that I know already deal move shit for me. I'd be a more relieable supplier than most their people probably, and I know they're be loyal and keep it on the DL, I could also be loose about it and have them move slow and safely) then I start with 100$ a month with my honist job till I get threw college where I plan to be a Psychologist/realiter. Start my medical carear and increase my 401k deposits and before I know it I'll get my CD money, with that 50k ill open a buisness, which I'm seriously thinking about opening an herb friendly buisness, not one to sell unless it's part medical dispencary (or if laws change) but I've heard of some places in Cali where you can smoke at a hookah bar type of thing, or i'll open one in amsterdam, or use the 50k in some other way. Then with that I'll just live a normal life, with a heafty 401k.

[Jonsi]

Thanks all for the rep. It's very nice.

And never hesitate about sending me PM's, this is one of my passions. It's weird, I don't even care about amassing a fortune, I just think it's fun. So I'd love to answer questions.

As for the people looking for books, I'll tell you the three I recommend the most:

Eric Tyson is probably my favorite author on the subject. He's very objective, and not trying to sell you seminars. Just so you know, if you read books that peddle buying a subscription to something because the average person can't understand the market... put that book down and don't pick it up again. That's just bullshit to get you to subscribe to a newsletter. Eric Tyson is highly professional... so here are the two books I read... they're pretty similar, but with some differences.

Investing for Dummies: (Eric Tyson)
http://www.amazon.com/gp/product/076...752059?ie=UTF8

Personal Finance for Dummies: (Eric Tyson)
http://www.amazon.com/gp/product/076...752059?ie=UTF8

The Automatic Millionaire: (David Bach)
http://www.amazon.com/gp/product/076...e=UTF8&s=books

The Automatic Millionaire is the first book I read on the subject, and it's the one that kicked my ass into gear. If I recommend one book, it's this one. Bach is a seminar pusher, but this book is VERY good. It's a quick read and gives some charts that'll kick your ass into high gear. So if you pick one book, get this one. It's not informative about the intracacies of investing styles, so you probably won't learn too much about that from here, but for the third time in this paragraph, it'll kick your ass into gear. If you're a parent, I suggest getting this as a present for your teen. I've given my copy out to quite a few people I care about in hopes they pick up on the message.

As for solid information, the Eric Tyson books are second to none, this guy is awesome.

As for the housing market, if that is your thing, do it. The housing market is on par with the stock market, so expect around 10% historic returns (now comes standard disclaimer by all financial advisors, WHICH I'M NOT (legally have to say I guess, hah) but previous financial returns does not indicate future financial returns) So if you are more comfortable and know more about houses, yeah definately get in that field. I'm not as knowledgable about that topic, so I don't preach that one. But it is still a great field. Only issue is it's not as liquid as market funds, so should a disaster happen in your life, your houses won't sell as quickly as your stocks. Plus being a landlord isn't my cup of tea either. Hah

There are three vehicles for investing: stock market, housing market, small business. Small business is the one that can potentially give you the greatest rewards, but it's not easy to get into. So yeah...

Feel free to PM me any questions.

[4ction]

sorry i wasnt clear but i didn't mean to say "instead of". I think it's a great idea if the economy continues to thrive (even tho i have my doubts) so now I'm seriously considering putting away 100 or more a month just for the security.

With the real estate you can rake up tremendous profits if you play the game intelligently. Also i believe that the profit to skill/luck ratio leans much more in favor of real estate. And I'm not talking about buying second-property-investments either, because the loans are pretty shitty in those cases. What i hope to due is buy a house with very little of my money by using the OPM concept (Other People's Money-- banks, etc.) through kinda complicated loans (I'm still learning) and living in the houses for 3 of 5 years to avoid some major taxes when I decide to sell. And with the "profit" $$ I'll put the money directly into another house which i plan to move into (that's important to avoid more taxes) and i can either rent out the old house or resell it, tho it's better most of the time to rent it out. There's a lot more and some very good strategies in real estate books but one that i found really good is "How To Get Started In Real Esate Investing" by robert irwin. Some of the tax loophole books ive been reading are really good too. Keep in mind that im not an expert at this yet (I havent bought a house yet!) so ehh.. yeah
Vicious your plan sounds kind of like mine . pm'd you too

[sheeps101]

I own some commercial real estate that I inherited from my stepfather and mother and its a great way to make money. Its a lot of work, but I have one of my good friends who was a buisness major manage the buildings and another friend who went to trade school (ie is very good with his hands and maintence) maintain the buildings.

I mean yeah I could probably hire more specialized people, but, I made it, unfortunately through the death of my family, and I wanted to help out some friends who were out of jobs.

I think real estate is a great market to be in, but you really need to have to money to invest in it.

I would go with the CD's if I was you.

[Smoken Souljah]

the dude with the long post had it right, but i put my money in with t rowe price, not fidelity.... the average yearly rate of return by t rowe price kicks the shit out of the average yearly rate of return of fidelity!